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Author: Vawn Himmelsbach

  • I’m 35 and sunk $95,000 into the S&P 500 in February — then lost $15,000 in the sell-off. My financial advisor wants me to ride it out, but how long should I have to wait?

    I’m 35 and sunk $95,000 into the S&P 500 in February — then lost $15,000 in the sell-off. My financial advisor wants me to ride it out, but how long should I have to wait?

    Mark was nervous about taking the leap and investing in the stock market. As a 35-year-old health-care worker, he’d never had time to learn about the market — but with a lot of money sitting in the bank, he felt it was time to get some professional help and start making his money work for him.

    He started working with an advisor, who suggested — as part of a larger financial plan — that Mark put $95,000 into an S&P 500 index fund in early February.

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    But then the market plummeted and by early April he’d lost about $15,000. While the market has made a slight recovery, Mark has yet to recoup his original investment. No wonder he’s anxious.

    His advisor has told him to stay calm and hold on, but he’s wondering how long it could take till he breaks even, let alone sees a return.

    No easy answers with a market correction

    Numerous factors impact stock market returns, including overall economic conditions (e.g., GDP, unemployment rates), inflation, interest rates, market sentiment and geopolitical events. There’s no simple formula to predict when the market will fully recover. It could be days; it could be years.

    While past performance may not predict future performance, Mark’s advisor pointed out some recurring themes that may be helpful in easing his mind.

    Stock markets tend to go up over time as economies grow. For instance, the S&P 500 has returned about 10% per year (about 7% after inflation) since its inception in 1957.

    This doesn’t mean the market won’t experience volatility along the way. For example, in 2024, the S&P 500’s worst sell-off was 8.45%, its biggest rally was 31.54% and it ended the year up 25.71%. Also, declines of 10% or more are common, occurring in more than 47% of the calendar years from 1980 through 2024.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Between the Second World War and 2020, there were 26 market corrections of 10% or more from a recent 52-week high close, according to a Goldman Sachs analysis.

    The average decline in these bear markets was 13.7% over four months. It took an average four months to recover the losses. In 12 of the 26 corrections, it took an average 24 months to recover.

    There have already been two bear markets in the 2020s — outside the period studied by Goldman Sachs.

    The first, which followed a market peak in December 2019, took only four months to recover from the March 2020 trough. The second, driven by the war in Ukraine, supply chain disruptions and rising inflation, took six months to recover from its September 2022 trough.

    How long this current correction will take to recover is uncertain; it could progress into a bear market or it could recover quickly.

    However, it’s being driven by erratic policy decisions. If these continue to recur, they’ll maintain a high degree of uncertainty — which is bad for markets — and could harm the underlying economic fundamentals.

    This correction also appears somewhat atypical, as usually equity market sell-offs are “risk-off” trades where investors move into less risky assets such as Treasurys. This time, long-dated Treasury prices and the U.S. dollar have fallen as well.

    Dealing with a market sell-off

    What should Mark do to deal with this uncertainty?

    It can be tempting to get out when markets are falling. After all, the prospect of continued losses is daunting — but research shows that time spent out of the market can be costly.

    Missing just the five best days for the S&P 500 from Jan. 1, 1988 to Dec. 31, 2024 might mean missing out on the potential 37% gains that some of those who stayed invested in the market enjoyed over that period.

    In early April, the S&P 500 lost 12% over four days — a move some might see as a sign to exit the market.

    Right after, the market leapt 9.52% to notch its third biggest single-day gain in the post-WWII period. If Mark missed this day, he would have missed a chance to recoup a substantial portion of his losses.

    To take advantage of this market sell-off, Mark might consider putting more money into the market by dollar-cost averaging.

    This means he’ll buy the same dollar amount of units of the S&P index fund at regular periods, such as every month, regardless of the price of the index fund. In this way, he’ll buy more units when the fund is cheaper and fewer when it’s more expensive.

    Since his S&P 500 index fund is part of a larger portfolio, he should also reconsider rebalancing. For instance, if his portfolio was invested 80% in equities and 20% in fixed income, he might want to sell fixed income to buy equities to ensure this weighting is maintained.

    Luckily, Mark is a few decades away from retirement and he won’t realize any losses until he sells, so he has time to weather a long bear market to see it through to recovery.

    But he’ll want to make sure his investments are invested appropriately for his goals, age and risk tolerance — and maybe not check on them daily.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Panicked Americans are claiming Social Security early for fear of Trump slashing benefits and ‘chaos’ at the agency disrupting services

    Panicked Americans are claiming Social Security early for fear of Trump slashing benefits and ‘chaos’ at the agency disrupting services

    There’s been a spike in claims for Social Security — and fear may be one of the reasons why.

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    Pending claims for retirement, survivor and health insurance benefits jumped 16% in March to 580,887 from 500,527 a year earlier, according to an operational report from the Social Security Administration (SSA).

    Agency officials said that “fear mongering has driven people to claim benefits earlier” at a March 28 meeting that can be viewed on YouTube.

    Many Americans were already anxious about the long-term stability of Social Security. But leadership changes, staff cuts, office closures, debate and theories about privatization and alarming disinformation about widespread fraud are possibly creating a perfect storm of anxiety for many Americans.

    The Trump administration changes and claims of fraud are "leading people to make decisions based on fear,” Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, told The Wall Street Journal.

    Why Americans are worried about Social Security

    While President Donald Trump has repeatedly said he won’t cut Social Security benefits, fear is driving some Americans to claim their benefit earlier than planned — even if it means reducing their overall retirement income.

    Dan Hietpas, 64, told the Journal he was planning to claim Social Security at age 67 to maximize his benefit. But he’s taking it early due to concerns about benefit cuts and “chaos” at the agency. Christine Banner, 65, told the Journal she originally intended to file in about two years, but filed this year because she and her husband worry Trump’s allegations of fraud could be used to justify benefit cuts or service disruptions. "The couple hopes that if they are already receiving benefits, they won’t face any future reductions," said the report.

    Officials at the meeting also mentioned an increase in field office visits, calls to the agency and website traffic.

    More visitors are paying the SSA $100 for certified copies of earnings records. Hietpas and his wife, Jill, printed out their earnings records “in case their data disappears or becomes inaccurate.”

    “Typical year earnings statements is something we would not generally discuss about visitors coming to see us … They’re afraid of our systems going down. That’s what they’re telling us,” said an official. He also mentioned people coming in for ID proofing “because they’re afraid.”

    This is amid an environment of confusion created by the Department of Government Efficiency (DOGE), with its mandate to cut waste and reduce fraud.

    Earlier this year, DOGE under Elon Musk made leadership changes at the SSA, shuttered two departments, and reduced staff from 57,000 to 50,000 — though the agency was already chronically understaffed.

    Recently there have been reports of longer wait times for callers and website outages.

    DOGE also announced it was reducing 10 regional offices down to four and, on its website, listed federal real estate leases linked with 47 field offices that it is seeking to cancel, reported AP. The new SSA administration has since denied claims of field office closures, but Nancy Altman at Social Security Works told ThinkAdvisorthe statement was “splitting hairs” and “deceptive.”

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    There were also plans to scrap some services offered over the phone, but those plans were abandoned after panic ensued.

    Amid this overhaul, some lawmakers like Sen. Bernie Sanders began to worry the Trump administration is setting the stage to privatize Social Security. BlackRock CEO Larry Fink suggested letting Americans invest part of their Social Security funds.

    However, there is another great existential issue facing the program. Social Security is expected to run short of funds by 2035, which means it would only be able to pay 83% of benefits, according to the Trustees of the Social Security and Medicare trust funds report.

    The cost of claiming early

    Retirees may claim Social Security earlier than planned for any number of reasons, such as the loss of a job or a deteriorating health condition. At the same time, baby boomers in America are reaching “peak 65,” which means more than 4.1 million will turn 65 each year through 2027, potentially contributing to a surge in new claims.

    But workers tend to claim benefits sooner when Social Security’s finances are referenced negatively in the news, according to a 2021 study by the Center for Retirement Research at Boston College.

    Americans might also be worried about withdrawing from their nest egg while markets are plunging and economic uncertainty hangs in the air.

    The drawback of claiming Social Security early, however, is that you would miss out on a larger monthly benefit over the long run. While you can claim your benefit as early as age 62, the longer you wait, the bigger your monthly check.

    For example, you’ll take a reduced amount until you reach your full retirement age (FRA) as defined by the SSA, which is typically between 66 and 67 years of age. If you take your benefit at age 62, you could see a reduction in your benefit by as much as 30% (since it’s being stretched over a longer period of time).

    If you delay your benefit past full retirement age, your monthly check will increase as much as 8% a year until age 70. Those increases stop at age 70.

    Still, it doesn’t hurt to shore up your finances, especially in times of economic uncertainty. That might mean building an emergency fund, paying off any high-interest debt and saving more aggressively.

    It could be a good time to sit down with your financial advisor to ensure your portfolio is well diversified and has the right asset allocation for you; you may want to explore options beyond stocks and bonds or invest in alternative assets such as real estate or precious metals.

    While the future is unpredictable, most financial experts advise against making rash decisions with your finances based on fear — and that includes your Social Security benefit.

    It may be worth sitting down with your advisor or even a financial counselor before making a major financial decision that could impact your retirement permanently.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘Liberating these buildings from its dark past’: Developers spent $64 million turning this Virginia prison — originally commissioned by Theodore Roosevelt — into a 165-unit apartment complex

    ‘Liberating these buildings from its dark past’: Developers spent $64 million turning this Virginia prison — originally commissioned by Theodore Roosevelt — into a 165-unit apartment complex

    Would you choose to live in a prison? You might — if it had been converted into a community of well-designed apartments with a club house, swimming pool, green spaces, restaurants, retail shops and even a preschool.

    That’s exactly what was done to an old prison in Lorton, Virginia.

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    “We really felt that we were liberating these buildings from its dark past, and for that reason we thought Liberty was a good name for the project,” David Vos, a development project manager with real estate developer The Alexander Company, told CNBC Make It.

    From abandoned prison to designer apartments

    The Lorton Reformatory prison complex, originally commissioned by Theodore Roosevelt, was built in 1910 and shuttered in 2001. In 2002, Fairfax County bought the 2,324-acre campus for $4.2 million.

    In 2008, The Alexander Company — which specializes in urban infill development and historic preservation — partnered with the county and Elm Street Development to help convert the campus, with renovations taking place from 2015 to 2017.

    The company spent $64 million converting 207,000 square feet into the Liberty Crest Apartments. Rent for the 165 apartments ranges from $1,372 and $2,700 per month. For comparison, the average rent for all property types in Virginia is $1,700 per month.

    Forty-four of the units are set aside for people earning 50% of the median household income of $136,719 for Lorton, according to CNBC Make It. These units were fully leased within a couple of months and have been at full occupancy since.

    The Lorton Reformatory was a Progressive Era prison, so it’s architecturally interesting and laid out well for apartments, with plenty of windows providing lots of natural light and ventilation.

    The original dining room has been turned into a club house with a pool table and shuffleboard table, while the prison ball field has been converted to a central green for residents. There’s also a fitness center, yoga room, swimming pool and two playground areas, along with retail shops and restaurants.

    Plus, there’s still room for development. A few penitentiary buildings on the complex are slated to become commercial spaces and the power plant is being converted into 10 additional apartments.

    The developers, believing we can learn from our past, have kept some signage from the original prison intact as a reminder of what the buildings once were.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    The economic and environmental promise of adaptive reuse

    The Liberty Crest Apartments are a prime example of adaptive reuse — when existing assets in a built area are repurposed for new uses. This can be an environmentally friendly way to develop needed spaces such as affordable housing.

    According to The World Economic Forum (WEF), “cities are turning to adaptive reuse as a powerful strategy to reduce waste, cut emissions and enhance circular economy principles in the built environment.”

    Repurposing an existing building emits 50% to 75% less carbon than building new, according to WEF, and the process itself can be efficient — up to 90% of materials can be salvaged and diverted from landfills when buildings are repurposed rather than demolished. By saving the expense of demolition and new construction, repurposing can result in cost savings of 12% to 15%.

    Communities also benefit from adaptive reuse because it helps to preserve culture and architecture while creating unique, distinctive spaces to work and live. It can also be a catalyst for urban renewal and innovation.

    For example, where the Lorton prison complex was once an empty, decaying structure, there’s now attractive architecture, affordable housing and community spaces.

    Adaptive reuse projects can also boost property values in the surrounding community through neighborhood revitalization. Jobs are created during the project and, longer term, for ongoing maintenance and administration of the new facility — as well as through any commercial spaces that may be part of the development.

    However, it often means overcoming community and regulatory hurdles. In the case of Lorton Reformatory, investors initially expressed concern that the development was in a metro area without mass transit and that mixed-income housing might turn off prospective developers. Eventually, an investor did see the potential — and the result is Liberty Crest Apartments.

    Despite these types of hurdles, adaptive reuse projects represent a huge opportunity for developers and communities alike. CNBC Make It reports that 188 prison facilities were shut down in the U.S. between 2000 and 2022, and in at least nine states conversions of these facilities are either underway or have been completed.

    After all, why would communities and developers want to keep that much potential locked up?

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Finance professor bought Nvidia at US$0.48/share — but sold early and missed a life-changing gain of more than 25,000%. Here’s how investors can avoid his mistake 2025

    Finance professor bought Nvidia at US$0.48/share — but sold early and missed a life-changing gain of more than 25,000%. Here’s how investors can avoid his mistake 2025

    Long-term investing can test even the most disciplined investors. With markets swinging on everything from AI breakthroughs to political headwinds, the temptation to act emotionally — especially during big wins or downturns — is real.

    Amos Nadler, a behavioural finance expert and former professor at Western University’s Ivey Business School, knows this first-hand. Years ago, he bought shares of Nvidia (NASDAQ:NVDA) for just US$0.48 each. But before the chipmaker exploded into a US$3 trillion AI juggernaut, he sold most of his holdings — missing out on one of the biggest stock runs in tech history. As of March 2025, Nvidia trades around US$108 a share, after its value surged on AI chip demand and record-breaking earnings.

    Nadler’s story is more than a missed opportunity — it’s a case study in cognitive bias, and it holds critical lessons for investors trying to navigate 2025’s volatile but opportunity-rich market.

    The biggest reason for investor mistakes

    When Nadler was starting his teaching career, he wanted to gain some hands-on investment experience to share with his students. As a result, one of his earliest investments was stock in technology company Nvidia (NASDAQ:NVDA)— about US$800 to US$1,000 worth of stock. He paid approximately US$0.48 per share.

    After holding them for a period of time, Nadler noticed that the shares had earned a decent profit so he decided to sell a large chunk of his holdings. This was before 2014 and before Nvidia (NASDAQ:NVDA) would become a household name.

    Nadler’s goal was to talk about his experience. Turns out the sale gave Nadler lots to talk about with his students — since it was a big mistake.

    “I needed some war stories. I needed to talk about gains and losses,” he recently told CNBC Make it. “I need to put my own money to play and experience these things, and take it out of the lab, take it out of the textbooks.” Nadler’s lesson should be used by any investor tempted by bias or emotion.

    According to his trading brokerage, Nadler paid about US$0.48 per share, factoring in the stock splits during the company’s history. As of March 31, 2025, Nvidia (NASDAQ:NVDA) stock closed to US$108 per share, reflecting recent market volatility influenced by factors such as underwhelming initial public offering (IPO) of CoreWeave and concerns over potential tariff implementations. The firm’s value increased by more than US$2 trillion just last year.

    If Nadler had held onto the stock, his gain would have been over 28,000%. The value of his holdings would have been “enough to buy a nice house somewhere,” according to Nadler.

    Here’s the thing: Nadler sold the stock because he succumbed to a cognitive bias known as loss aversion. A cognitive bias is a consistent, repeated error in the way we process information and perceive reality. Loss aversion is a common cognitive bias that leads us to perceive losses as more significant than gains.

    In investing, loss aversion can cause us to fear losing the gains of a winning bet in our portfolio. It’s what happened to Nadler when he chose to sell his Nvidia (NASDAQ:NVDA) stock. As he tells it, “What was going through my head was, ‘Hey, I’m new with this. I just made a significant profit in a very short amount of time. I want to lock it in because I’m feeling afraid it may drop again.’”

    How loss aversion is driving your investment decisions

    You can judge your own loss aversion by considering whether you’d rather have $100 or flip a coin to either gain $200 for heads or $0 for tails. Most people would prefer the certain $100 and value the potential “loss” of this as greater than the potential but uncertain gain of $200. Still not sure, consider the same coin toss scenario but with a payout of $500 or $1,000. The lower the sum you’re willing to accept, rather than risk for the 50/50 chance of getting more, illustrates how risk averse you are (both in coin tosses and investing).

    So, how does loss aversion impact your investment decisions?

    If you choose to cash-in on your gains, end up being too conservative in your portfolio construction, try to time your entry into the market or instinctively move to cash to avoid volatile markets than you’re operting from a loss aversion bias — and this can all hurt your overall portfolio performance.

    Avoiding this cognitive bias means carefully evaluating any stock sale, especially if you plan to move to cash, and trying your best to remove emotion (such as fear) from the decision. For instance, if you’re planning to sell a stock because it’s had a strong run, but fundamentals suggest it’s still a solid investment, you may want to step back and evaluate whether you’re making a rational decision or your actions are being driven by fear.

    Engaging with a financial adviser could potentially help you manage that fear by providing an arms-length assessment of your decisions. An adviser could also help you set realistic investment goals so you’re not relying on “bets,” while also helping you diversify your holdings to spread your risk and make individual risks within the portfolio feel less intimidating.

    Increasingly, there are also technological tools available to help you remove emotion from investment decision-making. For instance, Nadler founded Prof of Wall Street, which provides software products that help investors use behavioural science to manage biases and improve investment decision-making.

    Fear can be a powerful force. Identifying it and enlisting the help of a financial adviser or technological tool could help to take the cognitive bias out of investment decision-making and, hopefully, result in better returns.

    Sources

    1. CNBC Make It: I sold Nvidia — then it went up over 28,000%, says behavioral finance prof: I could’ve bought ‘a nice house somewhere’, by Ryan Ermey (Dec 12, 2024)

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • This Chicago family is ‘stuck in limbo’ after their dream home turned into a nightmare before they’d even moved in — how 1 seller’s code violations unleashed a can of worms

    Buying a house can be an exciting venture, but the potential for disappointment and heartbreak can quickly turn the entire process into a nightmare.

    For one Chicago family, their homeownership dream was derailed at the finish line, and instead of settling into their new home, they’re now “stuck in limbo,” according to CBS News Chicago.

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    Looking to move to the suburbs, the Hovey family had found a split-level house with an open layout, new floors and a kitchen that featured stainless-steel appliances. According to the listing, every detail had been “meticulously redone.”

    “It was just perfect for us,” Sara Hovey told CBS News Chicago. That is, until it came time to close.

    Transfer stamps hit a snag

    At that point, the Hoveys learned that their dream home didn’t have the real estate transfer stamps needed for the transaction to be made official. These stamps are issued by the local municipality when the transfer tax on the property is paid.

    The calculation method for the tax — often a flat rate or a percentage of the property’s value — varies by location. Issuance of these transfer stamps usually requires that other conditions — which also vary by location — must be met.

    For example, there can be no liens or fines associated with the property. And it must be inspected by a professional — any building code violations could delay the issuance of transfer stamps until the issues are remedied.

    In the Hoveys’ case, both the seller and the family’s lawyer assured the family that sometimes the stamps aren’t issued and “it’s not a big deal.” Turns out, it was a big deal — a building inspector found multiple building code violations with wiring and vents, and noted that fixing these violations could require the removal of drywall.

    Most concerning, however, was that a load-bearing wall may have been removed, which could potentially make the house unsafe. “The inspector told my husband verbally not to move in, so we don’t feel comfortable moving in,” said Hovey.

    Unfortunately, the violations were discovered after the Hoveys had already wired $200,000 to the seller to close the transaction — and none of the involved parties were helping to resolve the situation. The Hoveys retained a litigation lawyer and asked the title insurance company to unwind the transaction and return their money.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Code violations can be costly

    Typically, the seller must remedy building code violations unless they’re selling the house “as is.” A house sold “as is” will usually sell at a discount since the buyer will be responsible for fixing the violations.

    “As is” houses are typically bought by professional investors and real estate flippers. If you’re considering selling a house “as is,” you’ll need to weigh the costs of remedying the violations versus the lower proceeds of the sale.

    Sellers who don’t plan to sell “as is” will need to remedy major code violations before the transaction can close, and this can be costly. Not only does the seller have to pay for repairs, but it also extends the time that the seller is paying expenses such as the mortgage, insurance, property taxes and basic upkeep.

    For repairs that could potentially take months, this can substantially reduce the equity the seller is able to take out of the sale.

    For all involved, it’s best for the seller to identify any issues and make the required repairs before listing the property. This allows the seller to know the cost of repairs prior to pricing the home for sale.

    Just as some municipalities won’t allow the sale to close with code violations, some lenders won’t release funds to buyers until the violations are remedied. If you’re depending on an FHA-insured loan, be aware that the property must meet certain standards to qualify for financing.

    As for the Hoveys, no progress had been made on fixing the issues after a month and a half, so out of frustration they called CBS News Chicago. After the Hoveys’ story gained media coverage, the seller’s attorney said the seller is now making the house compliant — which was confirmed by the municipality.

    The title company has acknowledged that “some elements of the claim fall within the scope of the title insurance coverage” and says it’s working with all parties to resolve the situation.

    Meanwhile, costs are adding up for the Hoveys who are paying rent and legal fees, as well as the mortgage on the new property.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m inheriting my elderly parents’ $680K investment portfolio — it’s managed by a long-time advisor with a 1.75% fee. Should I fire the manager for taking too high a cut or stick with him?

    I’m inheriting my elderly parents’ $680K investment portfolio — it’s managed by a long-time advisor with a 1.75% fee. Should I fire the manager for taking too high a cut or stick with him?

    When you’ve lost your parents, not only have you inherited your their portfolio, you’ve also inherited their long-time advisor. Now you’ll have to decide if you should move the money elsewhere or even manage it yourself.

    But, since the portfolio has strong returns, why mess with it if it ain’t broke? This can be a difficult decision, rife with guilt and obligation, especially if your parents have worked with this advisor for decades.

    Understanding your options

    Since this is a sizable portfolio, a financial advisor could help with portfolio management, investment management and performance reporting, as well as aligning asset allocation with risk tolerance. The advisor could also help by creating a custom strategy to help you reach your retirement goals and ongoing financial management to adjust the portfolio as necessary.

    But professional advice isn’t free, and the fee may be a percentage of your assets under management (AUM). While the average advisory fee is around 1.02% according to Camber, 1.75% isn’t out of line with a full-service wealth management firm. However, it does mean that your $680,000 portfolio is costing $11,900 per year — though that should be compared against the returns on the portfolio.

    With assets under management, the fee serves as an incentive to maximize returns. In other words, growing your assets is in your advisor’s best interests. So, if the returns are exceptional, then the higher rate may be worth it.

    Robo-advisors charge lower fees, but you (obviously) won’t get the human touch. There’s also other drawbacks, like a narrow range of investment options and limits on how personalized the advice is. Of course, there’s also the possibility of managing the money yourself, but you should be financially literate and feel comfortable enough to invest according to your financial goals.

    Otherwise, you may want to consider another arrangement like an annual retainer or flat fee for various services. A retainer could cost anywhere from $6,000 to $10,000, according to Harness. You could also consider working with a financial advisor who charges a fee on a per-hour or project basis, if you’re interested in doing some of the money management yourself. An hourly fee ranges from $200 to $500 an hour, according to Panorama Financial Planning.

    Finding the right fit

    Before making a decision, it would be a good idea for you to sit down with your parents’ advisor, whether on a video chat or in person. First off, this will give you a sense of whether you’ll ‘click’ with this person and if the firm is a good fit for you (or not). If you don’t mesh well, or you don’t feel like your needs aren’t being met, then that may be reason enough to shop around.

    If you do decide to consider your options, you should look for an advisor — whether a registered financial planner, registered portfolio manager or other designation — who is also a fiduciary. Being a fiduciary means that they must, by law, put their clients’ interests ahead of their own (so, for example, the advisor wouldn’t be compensated through commissions).

    If you decide to forgo an advisor and manage the portfolio yourself, you’ll want to have an understanding of how to select and manage a diversified portfolio that will meet your goals. You’ll want to adjust the asset allocation as you age and rebalance at regular intervals. This is also a situation where you could opt to pay for hourly or project-based advice when you need it.

    No matter what you decide, it doesn’t have to be forever. You can see how things go and then reassess, make slight adjustments or even big changes. And, if you’re dealing with the recent death of loved ones, it’s a good idea to take your time and consider your options.

    Sources

    1. Camber: What are the average financial advisor fees in Canada? (Oct 2024)

    2. Harness: How Much Does a Financial Advisor Cost?, by David Snider (Jan 26, 2025)

    3. Panorama Financial Planning: How Much Do Fee-Only Financial Advisors Charge in Canada?, by Jim Pan (Sept 3, 2024)

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m 68, survived a car crash and have relied on Medicaid for years. Now I’m inheriting $250K from a friend — but fear losing benefits. How can I protect the money, make sure my kids get it?

    Imagine this scenario: Two decades ago, Kristin was driving home from a friend’s house when she was struck by a drunk driver, who hit her car head-on. After surviving a coma and suffering a brain injury that made it impossible to work, she’s been on Medicaid ever since.

    While she has enough money to get by — she has no debt and owns her house — she doesn’t have much left over at the end of the month. That’s why, when she found out she had inherited $250,000 from her best friend, she was incredibly grateful. But also a little worried.

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    A large lump sum of cash would bump Kristin over the income eligibility limit for Medicaid, so she could lose her benefits.

    She’s now worried about Medicaid’s five-year Look-Back Rule, a period during which Medicaid can evaluate a recipient’s financial history to ensure they’re not artificially reducing their net worth. If so, a penalty period would apply.

    Not only is Kristin worried about losing her Medicaid coverage, she’s also worried she might end up in violation of the Look-Back Rule and that a Medicaid lien would be placed on her property when she dies, so she wouldn’t be able to pass on her remaining assets to her children.

    Are her concerns valid or are there ways to make the windfall work more in her favor?

    Could an inheritance jeopardize Medicaid?

    The Affordable Care Act determines income eligibility for Medicaid based on Modified Adjusted Gross Income (MAGI). To receive Medicaid, you can’t exceed monthly income and asset limits, which differ by state. In most cases, a single senior applicant can’t exceed $2,901 a month in income, according to the American Council on Aging (ACOA).

    “In 2025, most states have an asset limit of $2,000 for an individual senior applicant and $3,000 for an elderly couple,” the ACOA writes. Some assets are exempt, such as the applicant’s house, vehicle and personal belongings. Each state sets its own rules around how IRAs, 401(k)s and pensions are accounted for, too.

    An inheritance would count as income in the month it’s received; in Kristin’s case, it would push her way over the income limit for Medicaid benefits.

    The first thing Kristin should do is report the inheritance to her state Medicaid agency.

    “Medicaid will view the inheritance either as income and/or assets, depending on when the inheritance was received and how long it has been since receipt,” the ACOA writes.

    But she should do it as soon as possible.

    “While a Medicaid beneficiary generally has 10 calendar days to report the receipt of an inheritance, this timeframe could be shorter or longer, depending on the state,” the ACOA says.

    If you don’t, and the inheritance disqualifies you from Medicaid, then you’d be responsible for reimbursing Medicaid for any benefits you received during that time.

    Each state has different rules, which can add to the confusion. A Medi-Cal recipient in California, for example, is allowed to gift an inheritance to a third party, so long as it’s done in the same month it’s received. The state also has no Look-Back Rule in place for assets transferred after Jan. 1, 2024.

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    Strategies that could help

    It’s possible to “spend down” your inheritance, too — so long as it doesn’t violate the Look-Back Rule.

    “If the money is spent in its entirety during the month of receipt and without violating Medicaid’s Look-Back Rule, one will be eligible for Medicaid again the following month,” according to the ACOA.

    That might mean paying off debt, paying for long-term care, making home modifications or renovations for accessibility purposes or buying assets that are exempt from the asset limit, such as clothing or home appliances. You could even pre-pay funeral expenses through an Irrevocable Funeral Trust.

    There are also strategies that may allow someone to benefit from an inheritance without losing Medicaid. These include:

    Pooled Special Needs Trusts (SNTs): To get around the Look-Back Rule, Kristin could transfer the inheritance into a Pooled Special Needs Trust (SNT), which is typically run by a charitable or philanthropic organization (there are several hundred to choose from in the U.S.). These transfers are exempt from the Look-Back Rule since they no longer count toward the recipient’s income or assets, according to the Brain Injury Association of America, but ensures they still have resources for long-term care.

    Medicaid-Compliant Annuities (MCAs): Buying an MCA means you give an insurance company a lump sum of cash, which is then converted into a steady income stream. When properly structured, it allows you to lower your countable assets so you don’t lose Medicaid benefits — but not all states treat annuities the same way.

    Medicaid Asset Protection Trusts (MAPTs): Sometimes called a Medicaid Planning Trust or Medicaid Trust, a MAPT protects a Medicaid recipient by putting their excess assets into a trust. The recipient names a trustee and beneficiary who will inherit those assets. Since the recipient who created the trust no longer owns those assets, it won’t count toward Medicaid’s asset limit.

    A MAPT can also be used to protect assets for a recipient’s children or other family members. For example, it can help to protect assets from Medicaid’s Estate Recovery, where the agency tries to reimburse the cost of the recipient’s care from their estate after they pass away.

    Before Kristin makes a decision, she may want to consult with an attorney. It’s worth looking for an attorney who is a member of the National Elder Law Foundation or the National Academy of Elder Law Attorneys and is familiar with the challenges that older adults can face.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • My daughter’s father died, but her stepmom is withholding all info about his estate — which I know is at least $2,000,000. We don’t even know if there is a will. What can we do?

    My daughter’s father died, but her stepmom is withholding all info about his estate — which I know is at least $2,000,000. We don’t even know if there is a will. What can we do?

    Regina’s ex-husband recently passed away, which has been devastating for their daughter, Ada.

    Ada shared a strong bond with her dad and helped care for him as his health declined in the last few years of his life. She was also close to her stepmom — or so she thought.

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    Since Ada’s dad passed away, her stepmom has cut off communication and withheld all information about his estate, which Regina estimates to be at least $2 million. In his final days, Ada’s dad told her that he had named her the executor of his will. However, she doesn’t have a copy of the will and isn’t sure whether an original even exists.

    Beyond feeling hurt by her stepmom’s cold shoulder, Ada isn’t sure if she has any legal recourse. Her dad and stepmom lived in Arizona — one of nine states with community property laws — which means her stepmom is automatically entitled to a portion of their shared estate. Regina is wondering what rights Ada has, especially if no will is found.

    Most Americans don’t have a will

    As of 2025, only about a quarter of Americans (24%) have a will, versus 33% in 2022, according to a survey by Caring.com.

    “Since 2022, procrastination has been the most popular answer for why people haven’t made a will or a trust,” the survey found. “Men procrastinate on estate planning more than women, but only by a slim margin.”

    An earlier survey by Caring.com, conducted in partnership with AARP, found that less than half (45%) of people over age 55 have a will. Many have never created an estate plan or updated an old will to reflect major life changes, such as a divorce or remarriage.

    Creating a will is more important than ever, as the U.S. undergoes what’s being called the “great wealth transfer.” The Cerulli Report estimates that $105 trillion will pass from older generations to their heirs through 2048, with another $18 trillion going to charities.

    If Ada’s dad had a will and named her executor (or as a beneficiary), she would have the legal right to see it. However, even if no will exists, she still has options.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    What are Ada’s options?

    Because Ada’s stepmom has cut off communication, it may be time to bring in a professional. If Ada has asked to see the will but has received no response — or is being given the runaround — she should consider consulting a trust and estate planning attorney to help her understand her rights.

    For example, if Ada suspects that her stepmom is hiding the will, she has legal recourse. According to the Senior Advocate Center, an organization that provides elder law resources, “you may need to file a petition with the probate court to compel the production of the will.” An attorney can help with that process.

    If no will exists, the estate will be handled under intestacy laws, meaning assets will be distributed according to state law. The estate will go through probate, which determines how assets are divided or liquidated to pay off debts. This process can be time-consuming and expensive, and the state’s distribution rules may not reflect the deceased’s wishes.

    In a community property state, any income or assets acquired during the marriage are considered joint property, regardless of who earned or obtained them. The nine community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin — though each state has its own interpretation of the rules.

    Typically, in these states, the surviving spouse receives a share of the estate, while the remaining assets are distributed to the deceased’s heirs, including biological children — unless a will states otherwise.

    Whatever the case, Ada has rights. And with $2 million at stake — not to mention her father’s final wishes — seeking professional guidance may be the best course of action.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m 31, inherited $100,000 from my grandma, and my fiancée says I’m ‘stingy’ for refusing to spend it on a ‘dream’ wedding — but I want to use it for a house, kids. Am I wrong for saying no?

    I’m 31, inherited $100,000 from my grandma, and my fiancée says I’m ‘stingy’ for refusing to spend it on a ‘dream’ wedding — but I want to use it for a house, kids. Am I wrong for saying no?

    When Jim’s grandmother passed away, he didn’t just inherit her favorite teacups or photo albums — he inherited $100,000, and with it, a dream she always had for him: building a future, buying a home and starting a family.

    Not long ago, Jim proposed to his girlfriend of three years. They’d been planning a small, intimate wedding with a budget of around $20,000 — part of which would come from their parents. They hadn’t saved much of their own money and didn’t want to go into debt for just one day.

    Don’t miss

    But since Jim received news of his inheritance, his fiancée has seemingly switched gears. Now she wants a glitzy destination wedding, a designer dress and a much longer guest list. Jim wants to stick to their original plan, but now she’s calling him “stingy” for refusing to spend “our inheritance” on her “dream” wedding.

    Now Jim’s questioning how well he really knows his fiancée and whether they share the same life goals — or if he really is stingy for saying no.

    Understanding the cost of big weddings

    Maybe you can’t put a price on love, but you can definitely put a price on a wedding — and that price is getting even more expensive. According to Zola’s First Look Report on wedding trends for 2025, the average cost for a wedding is projected to hit a high of $36,000, up from $33,000 in 2024.

    Of course, the price tag depends on location. New York City was the most expensive place in the U.S. to get hitched, averaging $65,000. Destination weddings aren’t cheap either, averaging $41,312.

    Zola also followed up with couples who got married in 2024. About 20% said they went over budget by $10,000.

    If Jim and his fiancée stuck with their original plan, they could use that $100,000 to get on solid financial footing as they start their life together. That could mean an emergency fund, paying off high-interest debt or boosting retirement contributions.

    If they want to buy a home, the money could cover a 20% down payment on a $500,000 property. If they plan to have kids, it could help start a college fund. Or they could invest it for long-term goals — for example, if Jim invested the money with 6% annual returns, it could grow to more than $300,000 in 20 years.

    In the meantime, Jim could park the money in a federally insured high-yield savings account while he decides. He should also check whether any inheritance tax applies. As of 2025, only five states have inheritance tax, which is paid by the beneficiary. Those include Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania and Iowa.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Financial planning needs joint communication

    The bigger concern here is that Jim and his fiancée may not be on the same page about their financial goals.

    While she could just be having a bridezilla moment, this shift might also reflect deeper differences in financial values — ones that could cause bigger problems if they’re not addressed.

    Financial transparency means talking openly about shared goals — short-term (like a wedding), mid-term goals (like buying a home) and long-term goals (like saving for kids’ education or retirement).

    Once they’re married, their tax and legal status will change. They’ll be sharing a household budget and likely filing taxes together, so it’s important to discuss what their financial future looks like before walking down an aisle.

    Nearly one in four couples say money is their biggest relationship challenge, according to Fidelity’s 2024 Couples & Money study. But those who make financial decisions together are more likely to say they communicate well or very well with their partner.

    If Jim and his fiancée can’t find common ground on managing the inheritance, it may be time to consider premarital financial counseling or working with a financial advisor.

    There may be room for compromise. They already had a $20,000 wedding budget. Many financial experts agree it’s okay to spend a small portion — say, 5% to 10% — of a large windfall on something memorable. In Jim’s case, that could mean putting 10% toward the wedding, bringing the total to to $30,000.

    That extra cash could cover a larger venue, a designer dress or a bigger guest list — but there would still need to be compromises. Maybe a destination wedding is still on the table, but somewhere more affordable in the Caribbean instead of Tuscany or Fiji.

    Disagreements about how to spend an inheritance aren’t uncommon. It’s not necessarily a dealbreaker, but if Jim’s fiancée is focused solely on what she wants from his inheritance, it could be a yellow flag worth paying attention to.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m turning 65, about to retire and my kids are pushing me to start ‘Swedish death cleaning’ — how this simple morbid-sounding practice could become your most lasting legacy

    Evelyn is turning 65 and about to retire — and now her kids are talking about something called ‘Swedish death cleaning.’

    While it may sound morbid, Swedish death cleaning is a philosophy rooted in practicality. In Swedish, it’s known as döstädning, which is essentially a decluttering exercise that helps you simplify your life while reducing the burden on loved ones once you pass.

    Don’t miss

    As you age, you start getting rid of ‘stuff’ you’ve accumulated throughout your lifetime that you no longer need — so no one has to do it for you later. You keep what’s useful or meaningful and let go of everything else.

    “Visit [your] storage areas and start pulling out what’s there,” writes Margareta Magnusson — who popularized the philosophy — in her 2017 book, The Gentle Art of Swedish Death Cleaning. “Who do you think will take care of all that when you are no longer here?” This isn’t meant to be depressing; rather, she says it can be “a delight to go through things and remember their worth.”

    But Swedish death cleaning isn’t just an amped-up version of spring cleaning. It can also be part of your retirement and estate planning.

    Swedish death cleaning for your finances

    Since Evelyn is about to retire, decluttering could help her downsize her possessions and possibly even downsize into a smaller home, which could reduce her living expenses in retirement. By being more intentional about what she’s spending and acquiring, it could help her manage her retirement funds and spend on what matters to her most.

    But it’s not just about decluttering possessions. Swedish death cleaning your finances could include closing accounts you no longer use and getting rid of paperwork you don’t need anymore. For example, do you really need those boxes in the basement with 30 years’ worth of tax documents? Find out what you need to keep and then shred the rest.

    It could also mean organizing your bills, bank account information, insurance information and other legal documents so your heirs will have everything they need at their fingertips to manage your estate. You can store that information in a system of binders, in a safe deposit box at the bank or in a secure online portal (or a combination of all three).

    To declutter your finances, you could focus on paying off any high-interest debts now so you don’t leave that behind for your heirs. You may also be able to consolidate some of your financial accounts. For example, do you have more than one 401(k) and could you roll those into a single IRA?

    It’s also a good time to revisit and rebalance your investments. For example, since Evelyn is about to retire, she may want to shift her investments into lower-risk options, such as fixed-income securities or money market funds.

    Also, make sure your will is up-to-date, and be sure to update the beneficiary details in your will, pension and life insurance policy.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Clean up your estate too

    Applying the philosophy of Swedish death cleaning to estate planning can spare your loved ones from financial stress after you pass. Imagine if Evelyn leaves behind piles of belongings, from a house full of furniture and collections of knick-knacks to stacks of old photo albums. Going through all of this can be a time-consuming — not to mention an emotional — process for her children.

    Ideally you’d want to facilitate a smooth transfer of wealth to your heirs. That means considering estate planning and tax implications now. Not only does this reduce the burden on your heirs, it can help you preserve your assets and your legacy — ensuring your wishes are honored.

    For example, Evelyn may want to leave something behind for her children and grandchildren, but she may also want to leave a gift-in-will to a charity that has meaning for her. Her late husband passed away from cancer, so she may want part of her estate to go toward cancer research.

    It’s important to have a conversation with your loved ones about what they want — and, perhaps more importantly, what they don’t want. Maybe Evelyn’s adult children don’t want her crystal and china, so she could give it away or donate it as part of her decluttering process.

    Incorporating Swedish death cleaning into your estate planning could also make it easier to update your will by reducing the number of possessions you’re leaving behind and explicitly stating who receives what. If you live amongst clutter, you’re less likely to specify who receives each one of your assets, which could create conflict between family members once you pass.

    It’s also a good opportunity for tax planning, so you can minimize the taxes on your estate — and leave more for your loved ones. This could include revisiting your Inheritance Tax (IHT) strategy to help reduce the liability on your estate.

    The transfer of your estate could be subject to an estate tax if its value surpasses the federal exemption limit. A handful of states also have an inheritance tax, which is paid by the beneficiary; some states have estate and gift taxes on top of federal taxes. It could be worth consulting with a tax planner to ensure you’re maximizing what you can pass on to your heirs.

    Your executor will be responsible for settling your estate, so if you streamline your possessions now, it will make that process easier — and less costly — when the time comes.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.